Global Market: Japan’s Nikkei rises as AI stocks track US chip gains

Japan’s Nikkei share average rose on Wednesday, supported by gains in artificial intelligence-related stocks following a rise in U.S. semiconductor shares.

The Nikkei was up 1.3% at 66,342.71 as of 0204 GMT, while the broader Topix gained 0.6% to 4,067.98.

U.S. stocks ended slightly lower on Tuesday as Treasury yields continued to climb ahead of key inflation and labour market data. However, the Philadelphia Semiconductor Index rose 1.3%, providing support to Japanese chip-related shares.


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According to Reuters, investors were also buying stocks linked to the domestic economy, although market breadth remained weak, prompting selective buying.

Technology investor SoftBank Group jumped 6.23%, while semiconductor-related companies Tokyo Electron and Advantest gained 3.13% and 1.03%, respectively.

Fibre-optic cable maker Fujikura climbed 6.21%.

Taiyo Yuden, which manufactures multi-layer ceramic capacitors used to regulate power in AI servers, rose 3.8% after announcing a business alliance with electronic parts maker TDK. TDK shares gained 1.3%, while rival Murata Manufacturing fell 2.7%.

Banking stocks also advanced, with Sumitomo Mitsui Financial Group rising 1.3% and Mizuho Financial Group gaining 2.35%. The banking sub-index climbed 1.38%.

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Shipping stocks rose 1.33%, led by a roughly 2% gain in Mitsui OSK Lines.

Despite the gains in major sectors, overall market breadth remained mixed. Of more than 1,500 stocks traded on the Tokyo Stock Exchange’s Prime Market, 44% advanced, 51% declined, and 3% were unchanged, Reuters reported.

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